Anzo explains delay in finalising deal for Gombak project

PETALING JAYA: Anzo Holdings Bhd’s wholly owned subsidiary Harvest Court Construction Sdn Bhd has yet to finalise the contract document and pricing for a mixed development project in Gombak, Selangor.
In a filing with Bursa Malaysia yesterday, Anzo said the delay was due to a revision in the design being undertaken by KL Northgate Sdn Bhd, as a result of changes in development components.
KL Northgate has informed Harvest Court that the design revision and the contract document are expected to be finalised by December this year.
“Upon finalisation of the contract document, Harvest Court together with MCC Overseas (M) Sdn Bhd will proceed with the bidding and tendering for the project, estimated by January 2018,” it said.
KL Northgate will make a decision on the award of the project to the successful parties after the tendering process.
The project in Gombak was initially designed to include a shopping mall, shop offices, hotel, residences and serviced suites with the contract work amounting to a maximum of RM1.21 billion.
The contract document and final contract pricing of the project were supposed to be finalised within three months from the date of the letter of intent, which was received by Harvest Court on April 13, 2017.
The project design is now being revised to focus on residential development instead of a shopping mall due to current market conditions.
Anzo’s share price closed 4.17% higher at 12.5 sen yesterday with a total of 4.5 million shares traded, giving it a market capitalisation of RM100.42 million.